Legality Of Investment Incentives Under International Law

Investment incentives are used as policy instruments in order to achieve specific economic or social objectives.Many countries consider them as essential for their policies,especially with regards to promotion of industry,exports and technology,reduction of unemployment and promotion of geographically disadvantaged regions.However,there is no unanimity on importance of incentives.Some scholars criticize them by considering them as a loss of revenues for the host country.The purpose of this research is not to discuss whether incentives are important or not.The main objective of this research is to make investigation on the legality of incentives under international law.The focus will be put on finding out answers to these four main questions:first,how are incentives dealt in various international legal instruments?Second,how can incentives be applicable to the principle of non-discrimination,which is a cornerstone of international investment law?Third,what is the legality of conditioning incentives to performance requirements?Fourth,how are incentives applicable to environmental or labor standards?Regarding the first question,this thesis makes analysis on various international legal instruments that deal with incentives at a multilateral level,regional or bilateral level.According to the second question,this thesis will show how the principle of non-discrimination is the main barrier to incentives.With this,it will find out how states may comply with such principle in their investment policies.As for the third and fourth questions,this research will see how incentives may be legally used with regards to performance requirements or with regards to environmental or labor standards.With this,it will try to find out appropriate ways that may be employed by states in order to design and accord incentives to investors lawfully.